Pandemic hits energy prices

Business

KINA Petroleum Corporation (KPC) says the oversupply of oil and gas as a result of the impact of the Covid-19 will continue to depress energy prices.
The company said in its quarterly report from July 1 to Sept 30 that the Covid-19 pandemic had had a devastating impact on the global economy and energy demand.
It said economic activity remained depressed and it believed this would remain the status quo until a vaccine was developed and travel could resume with optimistic forecasts for a vaccine at mid to end of next year.
The Brent oil price remains around US$40/bbl (K97) as at the time of reporting and was likely to flat line through to at least mid-2021, according to the company.
It said fortunately for KPC, its principal asset was economic at this price.
However, a series of amendments targeting the mining, oil and gas industries by the PNG Government had increased uncertainty over development of new projects.
“On 10 June 2020, the Parliament of PNG passed the Mining (Amendment) Bill 2020 – the Amendments introduce a ‘live data’ reporting obligation and give State entities priority in tenement applications over ‘reserved land’,” the company said.